CPM stands for “cost per mille” (mille meaning thousand in Latin), and it is a type of pricing model used in digital advertising. In a CPM model, advertisers pay a set price for every 1,000 times their ad is displayed to users, regardless of how many clicks or other interactions the ad receives.
The cost per mille can vary depending on a number of factors, such as the ad platform being used, the audience being targeted, and the type of ad being displayed. For example, a highly targeted display ad on a premium website may have a higher CPM than a more broadly targeted ad on a less well-known site.
CPM is a common pricing model for display advertising, where ads are shown on websites, social media platforms, and other digital channels. Advertisers can set a maximum CPM bid, which represents the highest amount they are willing to pay for 1,000 impressions of their ad. The actual CPM that an advertiser pays can vary depending on the competition for the target audience, the quality of the ad, and other factors.
Overall, CPM is a way for advertisers to pay for the exposure and visibility of their ad, rather than for specific interactions such as clicks or conversions. It can be a useful pricing model for building brand awareness and generating impressions, but may not be as effective for driving direct response or sales.
